Nvidia’s High-Stakes Earnings Moment Has Entire Market on Edge

Nvidia Corp.’s market-leading advance has left even the bulls questioning if an earnings beat will be enough to propel the AI chipmaker’s shares higher.

The key now, for Nvidia and the entire market, is whether the company can meet revenue estimates and assure investors that it sees further growth in generative artificial intelligence. Goldman Sachs Group Inc.’s trading desk has called it “the most important stock on planet earth,” given its outsize influence on equity gains this year.

“Nvidia has been the driver, the one stock that really set the tone,” said Kim Forrest, chief investment officer of Bokeh Capital Partners LLC. “That’s why everybody is fascinated by this thing and if it can put up another bunch of numbers that are impressive.”

Nvidia's Market Leading Gain Raises Bar Before Earnings

The stock now boasts a market capitalization of more than $1.7 trillion. It has the third-highest weighting in the S&P 500, behind only Microsoft Corp. and Apple Inc., so a swing either way will add or erase billions of dollars in value for investors.

Wall Street expects another banner quarter, with more than $20 billion in revenue, a jump of nearly 240% from a year earlier and the third straight period of triple-digit-percent gains, data compiled by Bloomberg show. Nvidia reports earnings after Wednesday’s close.